%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(66).png "Revised Instructions on Inoperative Accounts / Unclaimed Deposits in banks")
- Here are the key points from the circular:
- Reduction of Inoperative Accounts: Banks are urged to reduce the number of inoperative or frozen accounts. These are accounts that have not been operated for a long period (usually 10 years or more).
- Quarterly Progress Reports: Banks are required to report their progress in reducing inoperative accounts every quarter. This helps ensure that banks are actively working to manage these accounts.
- Seamless KYC Updates: To make the process of reactivating accounts smoother, banks should enable seamless KYC (Know Your Customer) updates. This can be done through mobile or internet banking, non-home branches, and video customer identification processes.
- Special Campaigns: Banks are encouraged to organize special campaigns to help customers reactivate their accounts. These campaigns can also be used to facilitate the updating of Aadhaar details for customers.
- Annual Review: Banks are advised to conduct an annual review of accounts with no customer-induced transactions for more than a year. This helps identify accounts that may become inoperative in the future and allows banks to take proactive measures.
- These measures aim to reduce the quantum of unclaimed deposits and return such deposits to their rightful owners.
- By making the process more customer-friendly and efficient, the RBI hopes to minimize the number of inoperative accounts and ensure that customers have access to their funds.
Question:
1 What is the primary focus of the RBI's December 2, 2024, circular regarding inoperative accounts?
- A) Reducing the number of inoperative or frozen accounts
- B) Increasing the number of frozen accounts
- C) Eliminating all types of accounts
- D) Transferring funds from inoperative accounts to active accounts
